Menchie’s

Brianna Broadwater, Brendon Wilsey, Jared Laird, and Margarette Bou

Brief History• First store in Valley Village, Los Angeles, California in May 2007

• Started franchising in 2008

• Mission Statement “we make you smile”

• Delivers mission through employing the 3-P principle: People, Place, and Product

• 518 locations around the world

Current Operations StrategyThree Phase System

Up to two channels

Self-Service:

Phase 1: Customers take cup, choose flavors

Phase 2: Customers add fruits or candy

Phase 3: Customers pay

Phase 1

Phas

e 2

Phase 3

Customer (Group)

Time In Time Out Wait Time (seconds)

# of Phases # of Server # of Fro-Yo Service Time (minutes)

1 5:06 PM 5:11 PM 0 3 1 5 5

2 5:20 PM 5:26 PM 0 3 1 2 6

3 5:25 PM 5:28 PM 0 3 1 1 3

4 5:26 PM 5:30 PM 0 3 1 1 4

5 5:27 PM 5:31 PM 10 3 1 1 4

6 5:31 PM 5:34 PM 0 3 1 2 3

7 5:32 PM 5:37 PM 0 3 1 2 5

8 5:34 PM 5:36 PM 0 3 1 1 2

9 5:37 PM 5:39 PM 0 3 1 1 2

10 5:37 PM 5:42 PM 0 3 1 1 5

28 6:21 PM 6:26 PM 0 3 1 1 5

29 6:22 PM 6:28 PM 0 3 1 1 6

30 6:24 PM 6:29 PM 0 3 1 1 5

AVERAGE 7.33333 1.566667 4.8

Advantages and Disadvantages of Current PracticeADVANTAGES

• Simple and Efficient• Employee labor• Cost structure (Weight)

• Self-Service, customer customization• Whatever combination they want.• However much they want.

• System able to Handle Traffic• Average wait in line during peak

hours: 7.3 seconds.

DISADVANTAGES• Customers make decision in

system• Customers spend on average 4.8m

in system

• Clustering and subsequent bottlenecking• Majority of time spent choosing

flavors• random clustering

• No clear exposure to Menchies’ other products• Menchie’s other products not visible

or in the system. (Cakes)

To help alleviate bottleneck:

1.Make signs clearer

2.Add “New Flavor” sign to call attention

Insert other products into system:

3.Cake sign above the flavors

Possible Improvement of Current Practice

Current Practices for Quality Management Control

Strawberries

• Ordered in 2-3 cases

• High demand

• 1 case= 4 packages, 32 oz

• 1 package makes 2 batches

• Avg. demand = 3 batches/day

Bananas

• Ordered in single cases

• Low demand

• SS = as low as 2 bananas

• LT = 1 day

• perishable

Quality Management ControlStrawberries Bananas

# cases an order 3 1

number of packages a case 4 (32 oz) 6 (1/2 lb)

# batches per package 2 1

# batches used per day 1-5 depending on demand 1-2 depending on demand

Costs 6.43 per package .59 a lb

25.72 per case 3.54 a case

3.22 per batch .30 a batch

Last Order date 2/20/2016

max inventory 4 cases 2 cases

Lead Time 1 day 1 day

last time? fridge 1-3d cut 5-7d whole 5-7 in fridge

counter 1 day cut , 1-3 day whole 5 hours sliced

freezer 6-8m whole 3-4m cut 2-5 months in freezer

Quality Management Control

Advantages and Disadvantages for Quality Management ControlADVANTAGES

• keeping up with demand

• small lead time• reduces risk of a stockout

• small safety stock• reduces risk of a stockout

DISADVANTAGES

• perishable

• bad fruit = wasted expense

Possible Improvements of Current Practices for Fruit Quality1. Ordering less fruit for delivery, increasing the number of deliveries

• High level quality for Menchie’s patrons• Set a new delivery schedule

2. Move bananas storage from from fridge to freezer• Cut back cost of wasted bananas

• $47*518 locations = $24,346 savings a year from Bananas• Reducing food waste footprint

Overall, Menchie’s is very efficient• Simple System

Operations System:• Can be more efficient• Save time & Maximize Merchandising

Quality Management Control:• Save money on Fruits• $47*518 locations = $24,346 savings a year from Bananas

Summary

Questions?